Assocham proposes inflation commission

New Delhi, May 31 (IANS) The Associated Chambers of Commerce and Industry (Assocham) has proposed the setting up of a National Inflation Commission to help the government contain prices of essential commodities. “In the economic priorities of the new government, a transparent approach to inflation needs to be followed,” Assocham president Sajjan Jindal said in a report.

“Inflation would always remain an issue as its linkages with prices of all articles especially that of primary articles would be crucial for credible political configuration,” he added.

According to Assocham, the proposed high-powered commission would work in close coordination with the finance ministry and suggest remedial measures to the government on inflation-related issues.

In recent times, despite a fall in inflation numbers, prices of essential commodities remained abnormally high, the chamber said.

“Even now, in the midst of an economic downturn and low inflation, prices of food grains remain unacceptably high. The real cause of this strange phenomenon needs to be clinically studied to enable the government to take remedial measures,” the report added.

The Reserve Bank of India (RBI) in its April report had drawn the attention of policy makers to the wide gulf between the falling wholesale price index and the rising consumer price index.

“A permanent watchdog on prices, therefore, would be a timely instrument to send the right and early signals to the government on all important price situation,” Assocham said.

In addition, the chamber has also asked the government to give autonomy to RBI so that the apex bank would be able to regulate speculations in the market.